Crude oil futures traded higher on Monday morning as China’s manufacturing PMI witnessed growth in March.
At 9.53 am on Monday, June Brent oil futures were at $87.28, up by 0.32 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $83.46, up by 0.35 per cent.
April crude oil futures were trading at ₹6,958 on the Multi Commodity Exchange (MCX) during initial trading on Monday morning, up by 0.71 per cent from the previous close of ₹6,909, and May futures were trading at ₹6,920, up by 0.63 per cent from the previous close of ₹6,877.
OPEC may review output targets
The Caixin China General Manufacturing PMI increased to 51.1 in March against 50.9 in February. New orders from domestic and foreign markets helped boost this growth in March. The month of March is the fifth straight month of growth. Input prices witnessed a marginal decline due to the lower raw material costs.
China is a major consumer of crude oil in the global market. Growth in manufacturing activity will help boost the demand for commodities such as crude oil in that market.
Market reports said that the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, is likely to review the market fundamentals and conformity of OPEC members to production targets during the week. The market expects the group to continue with the current output policies.
On Friday, the Deputy Prime Minister of Russia, Alexander Novak, said that Russian oil companies would focus on reducing the production output than on exports during the second quarter of 2024. This will help spread the production cuts with other members of OPEC+. Russia is one of the major producers of crude oil in the global market.
Turmeric loses sheen
April natural gas futures were trading at ₹145.40 on MCX, down 0.75 per cent from the previous close of ₹146.50.
On the National Commodities and Derivatives Exchange (NCDEX), April cottonseed oilcake contracts were trading at ₹2,592 against the previous close of ₹2,556, up by 1.41 per cent.
April turmeric (farmer polished) futures were trading at ₹17,030 on NCDEX during the initial hour of trading on Monday morning against the previous close of ₹17,138, down by 0.63 per cent.